The Defense Department has expanded its
programs aimed at gathering and analyzing intelligence within the United States, creating new
agencies, adding personnel and seeking additional legal authority for domestic
security activities in the post-9/11 world.

The moves have taken place on several
fronts. The White House is considering expanding the power of a little-known
Pentagon agency called the Counterintelligence Field Activity, or CIFA, which
was created three years ago. The proposal, made by a presidential commission,
would transform CIFA from an office that coordinates Pentagon security efforts
- including protecting military facilities from attack - to one that also has
authority to investigate crimes within the United States such as treason, foreign or terrorist
sabotage or even economic espionage.

The Pentagon has pushed legislation on
Capitol Hill that would create an intelligence exception to the Privacy Act,
allowing the FBI and others to share information gathered about U.S. citizens with the
Pentagon, CIA and other intelligence agencies, as long as the data is deemed to
be related to foreign intelligence. Backers say the measure is needed to
strengthen investigations into terrorism or weapons of mass destruction.

The proposals, and other Pentagon steps
aimed at improving its ability to analyze counterterrorism intelligence
collected inside the United States, have drawn complaints from civil liberties advocates and
a few members of Congress, who say the Defense Department's push into domestic
collection is proceeding with little scrutiny by the Congress or the public.

"We are deputizing the military to
spy on law-abiding Americans in America. This is a huge leap without even a
[congressional] hearing," Sen. Ron Wyden (D-Ore.), a member of the Senate
Select Committee on Intelligence, said in a recent interview.

Wyden has since persuaded lawmakers to
change the legislation, attached to the fiscal 2006 intelligence authorization
bill, to address some of his concerns, but he still believes hearings should be
held. Among the changes was the elimination of a provision to let Defense
Intelligence Agency officers hide the fact that they work for the government
when they approach people who are possible sources of intelligence in the United States.

Modifications also were made in the
provision allowing the FBI to share information with the Pentagon and CIA,
requiring the approval of the director of national intelligence, John D.
Negroponte, for that to occur, and requiring the Pentagon to make reports to
Congress on the subject. Wyden said the legislation "now strikes a much
fairer balance by protecting critical rights for our country's citizens and
advancing intelligence operations to meet our security needs."

Kate Martin, director of the Center for
National Security Studies, said the data-sharing amendment would still give the
Pentagon much greater access to the FBI's massive collection of data, including
information on citizens not connected to terrorism or espionage.

The measure, she said, "removes one
of the few existing privacy protections against the creation of secret dossiers
on Americans by government intelligence agencies." She said the Pentagon's
"intelligence agencies are quietly expanding their domestic presence without
any public debate."

Lt. Col. Chris Conway, a spokesman for the
Pentagon, said that the most senior Defense Department intelligence officials
are aware of the sensitivities related to their expanded domestic activities.
At the same time, he said, the Pentagon has to have the intelligence necessary
to protect its facilities and personnel at home and abroad.

"In the age of terrorism," Conway said, "the U.S. military and its
facilities are targets, and we have to be prepared within our authorities to
defend them before something happens."

Among the steps already taken by the
Pentagon that enhanced its domestic capabilities was the establishment after
9/11 of Northern Command, or Northcom, in Colorado Springs, to provide military
forces to help in reacting to terrorist threats in the continental United States. Today, Northcom's
intelligence centers in Colorado and Texas fuse reports from CIFA, the FBI and other U.S. agencies, and are
staffed by 290 intelligence analysts. That is more than the roughly 200
analysts working for the State Department's Bureau of Intelligence and
Research, and far more than those at the Department of Homeland Security.

In addition, each of the military services
has begun its own post-9/11 collection of domestic intelligence, primarily
aimed at gathering data on potential terrorist threats to bases and other
military facilities at home and abroad. For example, Eagle Eyes is a program
set up by the Air Force Office of Special Investigations, which "enlists
the eyes and ears of Air Force members and citizens in the war on terror,"
according to the program's Web site.

The Marine Corps has expanded its domestic
intelligence operations and developed internal policies in 2004 to govern
oversight of the "collection, retention and dissemination of information
concerning U.S. persons,"
according to a Marine Corps order approved on April 30, 2004.

The order recognizes that in the post-9/11
era, the Marine Corps Intelligence Activity will be "increasingly required
to perform domestic missions," and as a result, "there will be
increased instances whereby Marine intelligence activities may come across
information regarding U.S. persons." Among domestic targets listed are people in the United States who it "is
reasonably believed threaten the physical security of Defense Department
employees, installations, operations or official visitors."

Perhaps the prime illustration of the
Pentagon's intelligence growth is CIFA, which remains one of its least
publicized intelligence agencies. Neither the size of its staff, said to be
more than 1,000, nor its budget is public, said Conway, the Pentagon spokesman.
The CIFA brochure says the agency's mission is to "transform" the way
counterintelligence is done "fully utilizing 21st century tools and
resources."

One CIFA activity, threat assessments,
involves using "leading edge information technologies and data
harvesting," according to a February 2004 Pentagon budget document. This
involves "exploiting commercial data" with the help of outside
contractors including White Oak Technologies Inc. of Silver Spring, and MZM Inc., a
Washington-based research organization, according to the Pentagon document.

For CIFA, counterintelligence involves not
just collecting data but also "conducting activities to protect DoD and
the nation against espionage, other intelligence activities, sabotage,
assassinations, and terrorist activities," its brochure states.

CIFA's abilities would increase
considerably under the proposal being reviewed by the White House, which was
made by a presidential commission on intelligence chaired by retired appellate
court judge Laurence H. Silberman and former senator Charles S. Robb (D-Va.).
The commission urged that CIFA be given authority to carry out domestic
criminal investigations and clandestine operations against potential threats
inside the United
States.

The Silberman-Robb panel found that
because the separate military services concentrated on investigations within
their areas, "no entity views non-service-specific and department-wide
investigations as its primary responsibility." A 2003 Defense Department
directive kept CIFA from engaging in law enforcement activities such as
"the investigation, apprehension, or detention of individuals suspected or
convicted of criminal offenses against the laws of the United States."

The commission's proposal would change
that, giving CIFA "new counterespionage and law enforcement
authorities," covering treason, espionage, foreign or terrorist sabotage,
and even economic espionage. That step, the panel said, could be taken by
presidential order and Pentagon directive without congressional approval.

White House spokeswoman Dana Perino said
the CIFA expansion "is being studied at the DoD [Defense Department]
level," adding that intelligence director Negroponte would have a say in
the matter. A Pentagon spokesman said, "The [CIFA] matter is before the
Hill committees."

Sen. John W. Warner (R-Va.), chairman of
the Senate Armed Services Committee, said in a recent interview that CIFA has
performed well in the past and today has no domestic intelligence collection
activities. He was not aware of moves to enhance its authority.

The Senate Select Committee on
Intelligence has not had formal hearings on CIFA or other domestic intelligence
programs, but its staff has been briefed on some of the steps the Pentagon has
already taken. "If a member asks the chairman" - Sen. Pat Roberts
(R-Kan.) - for hearings, "I am sure he would respond," said Bill Duhnke,
the panel's staff director.